How will the rise of decentralized finance (DeFi) systems impact traditional banking models in the next decade?

The emergence of decentralized finance (DeFi) has sparked a compelling discussion in the financial sector about the future of traditional banking. DeFi platforms offer a suite of financial applications built on blockchain technology that promise greater transparency, accessibility, and efficiency by removing intermediaries like banks. As these platforms gain popularity, they challenge the conventional banking models by providing users with services such as lending, borrowing, and trading without the need for centralized authority. This question explores the potential shifts in the banking industry over the next ten years, considering both the opportunities for innovation and the regulatory hurdles that may arise as traditional banking institutions adapt to, or integrate with, DeFi systems.